Questions re: "in and out" vehicle purchase

In Louisiana the seller gets tax credit for his trade by doing an in and out. If he sold you his car directly to you he wouldn't get credit for it. He would pay tax on the full price of his 'new' car vs only paying tax on the difference between the 'new' car sales price and the trade amount. This only works if he is trading in a car and buying another. The dealer benefits bc they get the sale of the 'new' car and also immediately get rid of the traded in unit, which they might have sent to auction and take a loss on.

That's basically what I'm trying to do but I don't want the dealer trying to add-on all kind of extra "fees" because the vehicle is worth more than the trade-in.

I've already agreed on a price with the current owner of the vehicle -- it just can't be sold directly to me b/c it's business owned and the business would have to recognize income on the sale whereas if it's just traded-in then no tax consequences for the business.

At my dealership, everyone knows what an 'in & out sale' is. We charge a small fee, but its not a time consuming process and not usually a problem. And yes, whatever the amount the vehicle was traded in for, that is what the 'buyer' pays for vehicle, regardless of value. GL

@coach


If a dealer offered me 17K for a trade in, but I found someone to pay let's say 18.5K for it, would the dealer do that, or do they set the maximum transaction price?


I guess there only risk is a paperwork mistake which may lead to them owning the used car when they paid more than they normally would for it.

I love these deals because majority of the time the two parties are still negotiating when its time to do paperwork. Its nice to see both looks on their faces from the other point of view for a change.